John Curry: Ann...I am still awaiting an answer....

From John Curry, February 8, 2011

Ann....possibly the emails got mixed up but I sent you the letter below back on Jan. 28, which was ten days ago, and I still haven't received a letter from you stating whether or not ORTA has taken an official position on the latest STRS Board's recommended plan that passed at the January Board meeting by a vote of 7-3. I think you are aware that the OEA is against this most recent board approved plan.

From looking at your ORTA website, it appears that ORTA has not made a position statement re. this vote and this plan. Please inform me if, in fact, ORTA has or has not taken a stand re. this most recent STRS board action. If they have, what was that stand? Thank you.

John Curry
a Proud CORE member

From: John Curry
To: Ann Hanning
Sent: Friday, January 28, 2011 8:18 AM
Subject: So, Ann, where does ORTA stand on yesterday's vote at STRS?

Ann,

It is apparent, from the news article below and other news articles, that the OEA does "not support the plan." What is ORTA's position on supporting the plan or not supporting the plan?

John

Ohio Education Association spokeswoman Michele Prater said the state’s largest teachers’ union does not support the plan.

“We understand the timeline and the constraints the STRS board was under to put their plan together, but this proposal includes cuts that are too deep and that don’t offer sufficient flexibility to teachers who are nearing the end of their careers,” she said.

http://www.herald-dispatch.com/news/briefs/x2071549711/Ohio-teachers-board-votes-to-raise-retirement-age

Ohio teachers' board votes to raise retirement age

January 27, 2011
The Associated Press
Herald-Dispatch.com

COLUMBUS, Ohio (AP) — Ohio public school teachers would pay a larger share of their retirement costs, work until they’re older and see pension benefits cut under changes approved Thursday that aim to keep their primary pension fund solvent by saving $10.9 billion.

The State Teachers Retirement System board approved a host of changes to the benefit program that serves the bulk of the pension fund’s 470,000 members. The changes must be approved by lawmakers and the governor.

Spokeswoman Laura Ecklar said the package marks the end of a two-year effort to find a way to keep the pension fund afloat for the long haul.

“The bottom line is, without changes, sometime in the future the fund wouldn’t be able to pay benefits. And, difficult as it was to develop this plan and recommend reducing benefits, it is necessary to do,” Ecklar said. “And it still provides a reasonable, reliable pension for our retirees.”

The plan calls for increasing minimum age and service requirements necessary to qualify for retirement benefits and requiring teachers to pay 13 percent of their salaries into the system while receiving reduced benefits and smaller cost-of-living increases. Those payments are made in lieu of paying into Social Security.

Ohio Education Association spokeswoman Michele Prater said the state’s largest teachers’ union does not support the plan.

“We understand the timeline and the constraints the STRS board was under to put their plan together, but this proposal includes cuts that are too deep and that don’t offer sufficient flexibility to teachers who are nearing the end of their careers,” she said.

Board recommendations call for reducing retirees’ cost-of-living increases from 3 percent a year to 2 percent a year beginning July 1, 2012. Member contributions would also begin to rise on that date, increasing 1 percent a year to a total of 3 percent above the current 10 percent level between 2012 and 2014.

Other changes are scheduled to kick in Aug. 1, 2015 — assuming they are approved by the Legislature.

Republican state Rep. Lynn Wachtmann, chairman of the House Health and Aging Committee, said Wednesday that he plans to introduce a pension reform bill next week. The legislation is slated to include proposed eligibility and benefit changes to all five of Ohio’s public pension funds.

Gov. John Kasich has signaled he could play hardball on the issue, including opposing pension reforms he does not see as going far enough.

Ecklar said a combination of factors made current pension formulas unsustainable — including the hit to investment losses during the recent economic downturn and longer lives for retirees and their survivors.

Recommendations approved Thursday would reduce the difference between assets held by the pension fund and what it owes in pension payments to $27.9 billion — an amount the fund could feasibly pay off in the legally required 30 years.

To get there, the board voted to set a minimum age of 60 with 35 years of service as the new threshold for full pension eligibility. Under current rules, teachers can retire at any age once they’ve served 30 years. Members could still be eligible for partial early retirement benefits at 55, but after 30 years of service rather than the current 25.

The new age and service requirements will be phased in over eight years. Members will still be able to retire at age 65 with 5 years of service.

Teachers retiring after 35 years at age 60 or older would receive 77 percent of their final average salary as pension, a reduction from the current rate. The average salary would be calculated over five years rather than the current three, which could reduce payouts further.

The plan does not include any changes to the amount teachers’ employers, including school districts, colleges and universities, pay into the retirement system.